REITBull

Housing: Not Cheap Enough?

Hi Judy and Bill,

I agree that residential real estate does have some influence on IYR. And in all fairness, Annaly Capital, one of the top holdings rely heavily on residential mortgages. Thank you for the feedback!

Housing: Not Cheap Enough?

billddrummer,

Here is why I ask the question about IYR:

Top Holdings in IYR as of 1/7/09
6.71% SIMON PROPERTY GROUP INC
5.23% PUBLIC STORAGE
4.98% ANNALY CAPITAL MANAGEMENT IN
4.96% VORNADO REALTY TRUST
4.33% EQUITY RESIDENTIAL
3.73% BOSTON PROPERTIES INC
3.69% HCP INC
3.21% PLUM CREEK TIMBER CO
2.72% KIMCO REALTY CORP
2.67% AVALONBAY COMMUNITIES INC

Top Sectors as of 1/07/09:
22.89% Specialty REITs
19.69% Industrial & Office REITs
19.58% Retail REITs
14.40% Residential REITs
6.96% Diversified REITs
6.85% Mortgage REITs
3.95% Hotel & Lodging REITs
2.75% Real Estate Holding & Development
1.26% Real Estate Services
0.03% S-T Securities
(source iShares website)

There certainly is some exposure to residential real estate, however, the majority of the residential real estate is apartment REITs such as Avalonbay and Equity Residential. I only point this out because the dynamics in the commercial real estate market are very different than those in residential. Not a big deal, just thought I'd point it out.

Housing: Not Cheap Enough?

Hi Judy,

I enjoy the articles on SA, but why is IYR consistently linked to residential real estate and homebuilders?